Jump to content

City Place: Multifamily At 306 McGowen St.


Gaeshun

Recommended Posts

Recent signage on McGowen @ Bagby seems to suggest that Farb is ditching the "Citiplace" idea and selling the properties (3) around this intersection. How about a nice big park!!!??? Unfortnately, the property is too valuable and that idea will surely not go through. I imagine, in the end, we will see townhomes there.

Don't bother imagining anything; nobody knows what'll happen there. Very few developers can get financing in this environment, investors are skittish to say the least, and this site isn't even one of the better ones for which development has been put on hold or cancelled. It'll probably be at least another couple of years before things get settled and we're able to start seriously speculating again, and even then there's no guarantee what kind of residential product would be ideal.

Link to comment
Share on other sites

Recent signage on McGowen @ Bagby seems to suggest that Farb is ditching the "Citiplace" idea and selling the properties (3) around this intersection. How about a nice big park!!!??? Unfortnately, the property is too valuable and that idea will surely not go through. I imagine, in the end, we will see townhomes there.

1) that sign has been up almost as long as he's owned it

2) he's discussing options with different lenders and the land is NOT under contract. if someone told you that, they are either (a) a liar, (b ) misinformed, or (c ) an attention whore

3) there's a perfectly good park down the street

4) no one will pay his price and build townhomes, its not economically feasible

5) and yeah, what niche said ^

Link to comment
Share on other sites

4) no one will pay his price and build townhomes, its not economically feasible

Maybe this is a question deserving its own thread, but...what if "his" price were to change? How likely is that?

How can we possibly be in the midst of a financial crisis, with the value of all other assets and commodities (except Treasuries) plummeting, and real estate in Houston, TX doesn't take a mark-to-market hit? Surely the structural illiquidity of real estate and the illiquidity of capital markets both will adversely impact transaction-driven real estate companies as owners of property continue to stick it out, refusing to take a hit, but it just seems as though at some point transaction activity will necessarily return to an equilibrium and not before sellers' expectations are adjusted downward. And if/when that occurs, perhaps townhomes do become feasible on a site like this.

Link to comment
Share on other sites

Maybe this is a question deserving its own thread, but...what if "his" price were to change? How likely is that?

How can we possibly be in the midst of a financial crisis, with the value of all other assets and commodities (except Treasuries) plummeting, and real estate in Houston, TX doesn't take a mark-to-market hit? Surely the structural illiquidity of real estate and the illiquidity of capital markets both will adversely impact transaction-driven real estate companies as owners of property continue to stick it out, refusing to take a hit, but it just seems as though at some point transaction activity will necessarily return to an equilibrium and not before sellers' expectations are adjusted downward. And if/when that occurs, perhaps townhomes do become feasible on a site like this.

this is most definitely the case... price reductions are few and far between in houston right now, but as this economy continues to decline and the overall lack of liquidity in the capital markets continue to squeeze, many of those companies who think they can "wait it out" will find themselves desperate to sell in the next 6-12 months.

houston is lagging the rest of the country, and the distressed assets haven't come to market.... yet

Link to comment
Share on other sites

this is most definitely the case... price reductions are few and far between in houston right now, but as this economy continues to decline and the overall lack of liquidity in the capital markets continue to squeeze, many of those companies who think they can "wait it out" will find themselves desperate to sell in the next 6-12 months.

houston is lagging the rest of the country, and the distressed assets haven't come to market.... yet

I'm not sure about this. Despite a crumby economy... Houston is not like the rest of the country. If/when home prices do fall, price declines won't be anything like that in other parts of the country. Also, as soon as oil markets even think the economy might recover... oil will be going back up very quickly.

Link to comment
Share on other sites

im sorry, i was mistaken.

transwestern put up a marketing sign. transwestern told farb they had a buyer who could and would purchase the property. its on a non-exclusive basis and farb isnt paying a penny for marketing. if it was me, on either side, i wouldnt do it but thats another story.

imo - there is no buyer; they are only trying to get exposure and its a total waste of resources.

any buyer will be unable to justify his price to a potential lender.

but again, crazier things have happened...

Link to comment
Share on other sites

  • 6 months later...

I just noticed today that they are digging large, deep holes at the vacant lot, corner of McGowen @ Bagby. They also installed a box for electricity at the vacant lot across the street at McGowen @ Baldwin. Anyone know what's up? These are the lots that belong to Farb Properties from their failed venture to put up a midrise luxury apartment building. Major action still brewing over there even after 6:30pm tonight....

Link to comment
Share on other sites

I just noticed today that they are digging large, deep holes at the vacant lot, corner of McGowen @ Bagby. They also installed a box for electricity at the vacant lot across the street at McGowen @ Baldwin. Anyone know what's up? These are the lots that belong to Farb Properties from their failed venture to put up a midrise luxury apartment building. Major action still brewing over there even after 6:30pm tonight....

I wish I knew. We live very close to this block, and at 7:30am this morning (Saturday, Oct 3) the heavy trucks were out there "beep" "beep" "beeping" when backing up. 7:30am seems a little early for a Saturday morning. You think they're getting OT? This entire block is being dug up, and there is a cell tower smack dab in the middle of it.

I can't find any info on this contruction anywhere.

Link to comment
Share on other sites

I wish I knew. We live very close to this block, and at 7:30am this morning (Saturday, Oct 3) the heavy trucks were out there "beep" "beep" "beeping" when backing up. 7:30am seems a little early for a Saturday morning. You think they're getting OT? This entire block is being dug up, and there is a cell tower smack dab in the middle of it.

I can't find any info on this contruction anywhere.

>>>All I see is the construction company's sign on Bagby....they are still going....I heard them out there at 7am this morning! There is a mountain of dirt VERY HIGH out there right now....they seem to be wanting to get whatever it is done ASAP! I live close too and heard the beeping as well....I'll post as soon as I find out something.

Link to comment
Share on other sites

Looks like Forbes has sold their property that spans from Bagby to Dennis along McGowen. I'm not sure if there is already a thread on this...

I saw a bunch of contruction equipment their today and the workers were clearing the area... I had to stop and ask and they said they were indeed building new apartments.

Still haven't found any renderings or anything so please add some if you find it.

Good news in a troubled economy and even more residential for Midtown.

Link to comment
Share on other sites

Is it this thing finally coming alive? Chron Article

The sign around the property makes it look like Farb still owns the land.

BTW, what's with the huge pile of dirt on that land? It looks like they are going to build it on a mountain.

EDIT: I just found this thread on HAR about CitiPlace... Thread

Edited by brian0123
Link to comment
Share on other sites

I believe this is the rendering...

http://www.davisbros...apartments.html

With more info here...

http://www.davisbros...ents_specs.html

According to the picture, the sidewalks look like the small standard size. I was really hoping they would make them wide like at Post. If Midtown is supposed to be a walkable city area, why don't they give us a little more room? It's so hard to walk around Metro Midtown because of this. Get rid of some of the plants, bushes, and grass and give us room.

Link to comment
Share on other sites

Just called Davis Bros... they are HUD-funded apartments. No retail or amenities planned :(

Target date for completion is 15 months, so we're looking at Feb. 2011.

"HUD-funded"? That doesn't mean lower-income, does it? The links I've seen suggest it will be "high-end."

Link to comment
Share on other sites

"HUD-funded"? That doesn't mean lower-income, does it? The links I've seen suggest it will be "high-end."

Yep, HUD is lower income. I guess they scraped their plans for high-end stuff and went the HUD route. I guess the service related businesses within Midtown will have a new workforce of people that they can hire from.

Link to comment
Share on other sites

Yep, HUD is lower income. I guess they scraped their plans for high-end stuff and went the HUD route. I guess the service related businesses within Midtown will have a new workforce of people that they can hire from.

Uh-oh...unsure.gif

Link to comment
Share on other sites

Yep, HUD is lower income. I guess they scraped their plans for high-end stuff and went the HUD route. I guess the service related businesses within Midtown will have a new workforce of people that they can hire from.

no, thats not the case at all.

the financing is via a hud 221d4 loan, which has ZERO restrictions. full market rents, full amenities, full everything. no one on the outside would know the difference...

farb has rate locked and im 99% sure he moves forward.

Link to comment
Share on other sites

no, thats not the case at all.

the financing is via a hud 221d4 loan, which has ZERO restrictions. full market rents, full amenities, full everything. no one on the outside would know the difference...

farb has rate locked and im 99% sure he moves forward.

Well that makes sense then. I was told on the phone that they were luxury apartments... so that wasn't an overstatement I guess.

Link to comment
Share on other sites

no, thats not the case at all.

the financing is via a hud 221d4 loan, which has ZERO restrictions. full market rents, full amenities, full everything. no one on the outside would know the difference...

farb has rate locked and im 99% sure he moves forward.

So what's the catch? Why wouldn't other developers currently on hold pursue the same kind of solution?

Breaking ground on this now seems like terrible timing, but what do I know? There are already so many rental options in midtown, and Camden Travis will obviously open somewhat soon

  • Like 1
Link to comment
Share on other sites

So what's the catch? Why wouldn't other developers currently on hold pursue the same kind of solution?

Breaking ground on this now seems like terrible timing, but what do I know? There are already so many rental options in midtown, and Camden Travis will obviously open somewhat soon

there are a couple of catches (red tape, escrow, budgets, etc) but im headed out to lunch. ill gladly elaborate on my thoughts later and others (ie niche) may chime in as well.

there are some details that i cannot disclose but ill try my best to be as open as possible...

Link to comment
Share on other sites

So what's the catch? Why wouldn't other developers currently on hold pursue the same kind of solution?

Breaking ground on this now seems like terrible timing, but what do I know? There are already so many rental options in midtown, and Camden Travis will obviously open somewhat soon

Camden Travis opens Monday, for the record.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...